In a Contestable Market

question 80

Multiple Choice

In a contestable market,

• A) there is always price discrimination.
• B) there are high barriers to entry.
• C) the firm in the market usually earns a large economic profit.
• D) the firm in the market may play an entry- deterrence game.

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Definitions:

Special Prosecutor

An attorney appointed to investigate, and potentially prosecute, government officials for misconduct.

Newt Gingrich

An American politician who served as the 50th Speaker of the United States House of Representatives from 1995 to 1999.

Speaker of the House

The presiding officer of the United States House of Representatives, responsible for leading the House's legislative business and functions.